Intuit Bookkeeping Exam Questions With Complete
Solutions
1 or more shareholders who aren't personable liable. Must have
a board of directors and strict rules for operating. Owners can be
paid as an employee or from a distribution of dividends. Pay will
show up on the balance sheet if paid salary or on P&L is paid
dividends. Correct Answers C Corp
8 Step Payroll Process Correct Answers 1. Choose payroll
system
2. Create Payroll Policy
3. Gather Employee Info
4. Setup Direct Deposit
5. Establish Time Tracking System
6. Collect Employee Time Sheets
7. Approve and Submit Employee Payroll
8. Report and Update Payroll records
A bad debt is charged to expense as soon as it is apparent that an
invoice will not be paid. This is easier for business owners.
Correct Answers Direct Write-Off Method
A combo of cash-basis and accrual methods Correct Answers
Hybrid Accounting
A company's liabilities that will come due within 1 year Correct
Answers Current Liabilities
, A contra-asset account that has a natural credit balance.
Balances decrease with debits and increase with credits Correct
Answers Accumulated Depreciation Account
A financial statement that reports a company's assets, liabilities,
and equity at a specific point in time Correct Answers The
Balance Sheet
A kind of lease in which transfer of ownership of the asset is
intended at the end of the lease Correct Answers Capital Lease
A kind of lease in which transfer of ownership of the asset is not
intended Correct Answers Operating Lease
A loan used to finance a company's daily operations Correct
Answers Working Capital Loan
A measure of a company's profitability. Shows the percentage of
revenue that exceeds COGS Correct Answers Gross Profit
Margin
A physical asset, such as inventory, vehicle, or a building
Correct Answers Tangible Asset
A signed document containing a written promise to pay a stated
sum to a specified person or bearer at a specified ate or on-
demand Correct Answers Promissory Note
Accounting Cycle Correct Answers 1. Analyze and record
transactions
2. Post transactions to ledger
Solutions
1 or more shareholders who aren't personable liable. Must have
a board of directors and strict rules for operating. Owners can be
paid as an employee or from a distribution of dividends. Pay will
show up on the balance sheet if paid salary or on P&L is paid
dividends. Correct Answers C Corp
8 Step Payroll Process Correct Answers 1. Choose payroll
system
2. Create Payroll Policy
3. Gather Employee Info
4. Setup Direct Deposit
5. Establish Time Tracking System
6. Collect Employee Time Sheets
7. Approve and Submit Employee Payroll
8. Report and Update Payroll records
A bad debt is charged to expense as soon as it is apparent that an
invoice will not be paid. This is easier for business owners.
Correct Answers Direct Write-Off Method
A combo of cash-basis and accrual methods Correct Answers
Hybrid Accounting
A company's liabilities that will come due within 1 year Correct
Answers Current Liabilities
, A contra-asset account that has a natural credit balance.
Balances decrease with debits and increase with credits Correct
Answers Accumulated Depreciation Account
A financial statement that reports a company's assets, liabilities,
and equity at a specific point in time Correct Answers The
Balance Sheet
A kind of lease in which transfer of ownership of the asset is
intended at the end of the lease Correct Answers Capital Lease
A kind of lease in which transfer of ownership of the asset is not
intended Correct Answers Operating Lease
A loan used to finance a company's daily operations Correct
Answers Working Capital Loan
A measure of a company's profitability. Shows the percentage of
revenue that exceeds COGS Correct Answers Gross Profit
Margin
A physical asset, such as inventory, vehicle, or a building
Correct Answers Tangible Asset
A signed document containing a written promise to pay a stated
sum to a specified person or bearer at a specified ate or on-
demand Correct Answers Promissory Note
Accounting Cycle Correct Answers 1. Analyze and record
transactions
2. Post transactions to ledger
